A Company Loans Money from a Bank

A company loans money from a bank.As part of the security for the loan,the bank takes security over the company's warehouse,the value of which is sufficient to pay off the loan.Henry,a shareholder in the company,also guaranteed the loan,but he did so because he knew that the value of the warehouse was enough to pay it off.The company defaults on the loan and the bank appoints a receiver-manager who is responsible for managing the company.The receiver-manager fails to renew the insurance on the warehouse,and one evening it catches fire and is badly damaged.Assume the company's loan is for $100 000.00 and that the value of the warehouse has been reduced from $120 000.00 to $60 000.If the company now defaults on its loan and the bank sues Henry on his guarantee

A) Henry will have no liability because his guarantee is discharged by the wrongful omission of the receiver-manager.
B) Henry will have no defence and will be liable for $100 000.00.
C) the bank must first sell the warehouse before it can sue Henry.
D) Henry will rely on the bank's devaluation of the warehouse and will be liable for $40 000.00.
E) Henry will rely on the bank's devaluation of the warehouse and will be liable for $60 000.00.